Holidaymakers will be able to splash less cash this year in Portugal and Spain, according to The Post Office's annual Holiday Money Report, which was published today, 24 January 2011.
The survey, which tots up the cost of eight common holiday purchases in 36 countries, put the southern European neighbours in the top two slots for offering value to travellers. Compared with last year, a shopping list including items such as a cup of coffee and a packet of cigarettes was judged to have fallen by 18 per cent in Spain and been slashed in half in Portugal.
Spain and Portugal's tourist resorts have had a difficult couple of years thanks to a strong euro. But with the value of sterling increasing by more than 7 per cent on the euro since this time last year, these two favourite holiday spots are now on target to bounce back.
Sarah Munro, head of travel money at the Post Office, said: "Restaurants and bars [in Spain and Portugal] responded by slashing prices in a battle for business and competition between the two, which together with an improving exchange rate, has resulted in a price crash in both Portugal and Spain."
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